Korea Gas Corporation (KOGAS) will import 1.58 million tonnes of US liquified natural gas (LNG) under a newly inked deal with BP.

Under terms of a long-term contract inked on Friday (22nd April), sales and purchase has been agreed for up to 18 years from 2025.

Hee-Bong Chae, President and CEO of KOGAS, said, “With this contract, we expect to not only stabilise domestic natural gas supply and demand, but also cut rates and strengthen supply-demand responsiveness using volume flexibility.”

The deal is the latest in a series of moves made by KOGAS to try and strengthen natural gas price competitiveness.

No financial terms of the deal were disclosed.

KOGAS and BP hopes that the LNG agreement will act as a catalyst for strengthening the cooperative relationship, as well as alleviating KOGAS’ dependence on the Middle East.

BP will supply the purchased LNG from projects it is leading in the US, such as Freeport LNG.